Amazon, Google or Meta ask for your ROI number: here's why
What happens with VAT when you buy from European businesses.
In a nutshell
- Google, Meta, Amazon and other companies invoice from other EU countries, such as Ireland or Luxembourg.
- If you're in the ROI, they invoice you without VAT and you declare the VAT in your quarterly return: it goes in and out at the same time.
- If you're not, they charge you VAT on the invoice and you can't always get it back.
If you pay for advertising on Google or Meta, sell on Amazon or use software from European companies, you may have been asked for your EU VAT number. Here's why.
Why they ask for it
These companies invoice from another EU country. If you're a business with an EU VAT number, the transaction is business to business and they invoice you without VAT. If you don't have one, they treat you as a private individual and charge you VAT.
What happens with VAT if you're in the ROI
You receive the invoice without VAT and you declare that VAT in your quarterly return, as VAT you owe and as VAT you can deduct at the same time. You normally pay nothing extra; it's just declared.
If you're not in the ROI
They charge you VAT on the invoice. That VAT can't always be deducted in your return, so you end up paying more.
Frequently asked questions
Does it also apply to small purchases?
Yes. The amount doesn't matter: any purchase from a European business works the same way.